The transaction negotiations are turning adversarial and breaking down, so how do I rebuild trust with the buying entity to get this deal across the finish line?

Question

Tyler Smith · Accepted Answer

Exit transactions frequently stall or collapse during negotiations because the process becomes adversarial. When lawyers and investment bankers focus solely on risk mitigation and price, the human connection is often lost. To get a deal across the finish line, you must deliberately build and sustain trust.

Apply the principles of the Trust Creation Process to rescue struggling negotiations. Trust is built through personal connection and individual interactions, not just legal documents. Shift your mindset from self protection to an other focused perspective. Seek to understand the buyer's true goals, concerns, and risk tolerance.

Start by engaging and listening to the buyer without immediately defending your position. Frame the underlying issues objectively. For example, if there is a disagreement over valuation, understand that the buyer is trying to manage their downside risk. Instead of arguing over raw numbers, collaborate to envision a creative solution, such as an earn out structure tied to future performance.

Practice being trustworthy by delivering all due diligence requests promptly and transparently. If there is bad news in your historical financials, share it early and explain how your EOS® processes have resolved the issue.

Embrace strategic risk taking by showing vulnerability in the negotiation process. When both parties feel heard and respected, you move past transactional friction to achieve a clean transition.